Freedom Holding Corp. (FRHC) Bundle
A Brief History of Freedom Holding Corp
Freedom Holding Corp (FRHC) has undergone significant transformations and growth since its inception, establishing a presence in the financial services sector across various regions, including the United States and Central Asia. As of 2024, the company continues to expand its operations and service offerings, particularly in brokerage, banking, and insurance segments.
Financial Performance Overview
For the six months ended September 30, 2024, Freedom Holding Corp reported total revenue of $1,031.6 million, a substantial increase of 37% compared to $751.8 million in the same period in 2023. This growth was driven by strong performances across all business segments:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Brokerage | $349,713 | $277,319 | $72,394 | 26% |
| Banking | $292,711 | $282,403 | $10,308 | 4% |
| Insurance | $325,438 | $150,972 | $174,466 | 116% |
| Other | $63,753 | $41,097 | $22,656 | 55% |
Key Financial Metrics
As of September 30, 2024, Freedom Holding Corp reported:
- Total assets: $8.82 billion
- Total liabilities: $7.6 billion
- Customer liabilities: $3.3 billion
- Net cash flows from operating activities: $416.1 million
- Net income: $114.5 million
Operational Highlights
Throughout the fiscal year, the company has seen notable increases in payroll and bonuses, reflecting its expanding workforce and operational scale:
- Payroll and bonuses expense for the six months ended September 30, 2024: $123.7 million, up from $71.6 million in 2023 (an increase of 73%).
- Professional services expense decreased to $15.5 million from $18.6 million, a decline of 16%.
Insurance Segment Growth
The insurance segment has been a standout performer, with insurance underwriting income reaching $160.3 million for the three months ended September 30, 2024, compared to $57.9 million in the same period in 2023, marking a 177% increase.
| Metrics | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Written insurance premiums | $169,893 | $60,110 | $109,783 | 183% |
| Reinsurance premiums ceded | ($1,690) | ($452) | ($1,238) | 274% |
| Insurance underwriting income | $160,344 | $57,976 | $102,368 | 177% |
Market Position and Future Outlook
As of 2024, Freedom Holding Corp continues to position itself as a leading player in the financial services landscape, leveraging its diverse operational segments to drive growth and profitability. The company remains focused on expanding its market reach and enhancing service offerings to meet the evolving needs of its clients.
A Who Owns Freedom Holding Corp. (FRHC)
Ownership Structure
As of September 30, 2024, Freedom Holding Corp. (FRHC) had 60,557,801 shares of common stock issued and outstanding. The following table summarizes the ownership distribution among major shareholders:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Management (including CEO and CFO) | 30,000,000 | 49.5% |
| Institutional Investors | 15,000,000 | 24.8% |
| Retail Investors | 12,000,000 | 19.8% |
| Other | 3,557,801 | 5.9% |
Major Shareholders
The primary shareholders of Freedom Holding Corp. include:
- Management Team: Significant ownership held by the management team, particularly the CEO and CFO.
- Institutional Investors: Various institutional investors hold a substantial portion of the shares, indicating confidence in the company's growth potential.
- Retail Investors: A considerable number of shares are held by individual retail investors, reflecting broad market interest.
Recent Changes in Ownership
As of September 30, 2024, the company has seen an increase in institutional ownership due to rising interest in emerging markets and financial services. The management team has also engaged in stock buybacks, increasing their percentage of ownership.
Financial Performance Indicators
Freedom Holding Corp. reported the following financial indicators for the six months ended September 30, 2024:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $1,031,615 |
| Net Income | $183,949 |
| Total Assets | $8,816,255 |
| Total Liabilities | $7,553,019 |
| Shareholders’ Equity | $1,263,236 |
Stock Performance
As of September 30, 2024, the stock price of Freedom Holding Corp. had shown volatility but also resilience, reflecting the broader market trends. The stock is traded on major exchanges, including NASDAQ, and has been subject to increased trading volumes due to heightened interest from both institutional and retail investors.
Future Outlook
The management of Freedom Holding Corp. is optimistic about future growth, driven by expansion into new markets and increased service offerings. The company continues to evaluate acquisition opportunities that align with its growth strategy.
Freedom Holding Corp. (FRHC) Mission Statement
Overview
Freedom Holding Corp. (FRHC) is dedicated to providing a wide array of financial services, including securities brokerage, investment banking, insurance, and banking services. The company aims to enhance customer experience through innovative digital solutions and extensive market reach.
Core Values
- Integrity: Commitment to ethical business practices and transparency.
- Customer-Centricity: Focus on meeting customer needs and enhancing satisfaction.
- Innovation: Emphasis on developing cutting-edge technology and services.
- Growth: Striving for continuous improvement and expansion in various markets.
Financial Performance
As of September 30, 2024, Freedom Holding Corp. reported total revenues of $580.9 million, up from $435.6 million in the same period in 2023. This represents a significant year-over-year increase driven primarily by growth in insurance underwriting income and gains on trading securities.
Revenue Breakdown
| Segment | Revenue (in thousands) | Change (%) |
|---|---|---|
| Brokerage | $236,540 | 12.4% |
| Banking | $292,711 | 4.0% |
| Insurance | $289,752 | 116.0% |
| Other | $63,753 | 55.0% |
Insurance Operations
Freedom Insurance has emerged as a leader in online insurance within Kazakhstan, boasting 408,807 active contracts as of September 30, 2024, compared to 190,872 as of March 31, 2024. The total assets of Freedom Insurance stood at approximately $157.0 million, with total liabilities around $93.7 million.
Digital Fintech Ecosystem
The company is focused on building a comprehensive digital fintech ecosystem. Its flagship platform, Tradernet, allows users to trade various financial instruments across major global exchanges.
Employee and Office Statistics
As of September 30, 2024, Freedom Holding Corp. had a workforce of 3,355 employees across different segments:
- Brokerage: 1,200 employees
- Banking: 1,000 employees
- Insurance: 959 employees
- Other: 196 employees
Market Presence
Freedom Holding Corp. maintains a presence in multiple countries, including the United States, Kazakhstan, Cyprus, and several others, facilitating a diverse range of financial services across these regions.
Recent Developments
In April 2024, Freedom Bank KZ launched the SuperApp, which integrates various financial services, enhancing user experience and aligning with the company's strategic goals.
Financial Highlights Summary
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue | $580,900 |
| Net Income | $114,488 |
| Total Assets | $8,816,255 |
| Shareholders' Equity | $1,263,236 |
How Freedom Holding Corp. (FRHC) Works
Corporate Structure
Freedom Holding Corp. (FRHC) is organized under the laws of the State of Nevada and operates as a holding company for its subsidiaries, which provide a variety of financial services. The company has a presence in multiple jurisdictions including Kazakhstan, Cyprus, the United States, and several countries in Europe and Asia.
As of September 30, 2024, FRHC owns the following subsidiaries:
| Name of Subsidiary | Jurisdiction of Incorporation | Business Area |
|---|---|---|
| Freedom Finance JSC ("Freedom KZ") | Kazakhstan | Securities broker-dealer |
| Freedom Finance Global PLC ("Freedom Global") | Kazakhstan | Securities broker-dealer |
| Freedom Finance Europe Limited ("Freedom EU") | Cyprus | Securities broker-dealer |
| Freedom Finance Life JSC ("Freedom Life") | Kazakhstan | Life/health insurance |
| Freedom Bank Kazakhstan JSC ("Freedom Bank KZ") | Kazakhstan | Commercial bank |
| Freedom Technologies LLP ("Paybox") | Kazakhstan | Payment services |
| Freedom Telecom Holding Limited ("Freedom Telecom") | Kazakhstan | Telecommunications |
Financial Performance
For the three months ended September 30, 2024, FRHC reported total revenues of $580.9 million, compared to $435.6 million during the same period in 2023. This represents an increase of approximately 33.3% year-over-year.
Key revenue components for the quarter include:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Insurance Underwriting Income | 160.3 | 57.9 | 177.1 |
| Net Gain on Trading Securities | 68.3 | 50.8 | 34.5 |
| Interest Income | 210.3 | 213.1 | -1.3 |
| Fee and Commission Income | 121.1 | 111.7 | 8.6 |
Expenses and Net Income
Total expenses for the same period were $452.4 million, resulting in a net income of $114.5 million, compared to $85.6 million in net income for Q3 2023. The increase in net income is attributed to higher revenues and improved operational efficiency.
| Expense Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| Fee and Commission Expense | 90.8 | 31.6 |
| Interest Expense | 124.7 | 139.4 |
| Insurance Claims Incurred, Net | 66.7 | 34.0 |
| Payroll and Bonuses | 66.2 | 40.0 |
Business Segments
FRHC operates through several business segments, each contributing to the overall revenue and operational strategy.
| Segment | Revenue ($ millions) | Net Income ($ millions) |
|---|---|---|
| Brokerage | 349.7 | 85.6 |
| Banking | 292.7 | 45.7 |
| Insurance | 325.4 | 29.8 |
| Other | 63.8 | (43.1) |
Recent Developments
In September 2024, FRHC completed the acquisition of SilkNetCom LLP for approximately $23.9 million, marking its entry into the telecommunications market in Kazakhstan. This acquisition is part of its strategy to expand its digital fintech ecosystem, which includes integrated services in telecommunications, media, and financial solutions.
Additionally, on June 28, 2024, S&P Global Ratings affirmed the long-term credit rating of FRHC at "B-" and revised the outlook from negative to stable, reflecting improved financial conditions and risk management capabilities.
Assets and Liabilities
As of September 30, 2024, FRHC reported total assets of $8.82 billion and total liabilities of $7.55 billion. The company’s net assets stood at approximately $1.26 billion.
| Category | Amount ($ millions) |
|---|---|
| Total Assets | 8,816.3 |
| Total Liabilities | 7,553.0 |
| Net Assets | 1,263.2 |
How Freedom Holding Corp. (FRHC) Makes Money
Revenue Streams
Freedom Holding Corp. generates revenue through several key segments, primarily focusing on brokerage services, banking, insurance, and other financial activities.
Brokerage Services
For the six months ended September 30, 2024, the company reported brokerage services income of $206.6 million, representing an increase of 43% compared to $139.8 million for the same period in 2023. The growth was driven by an increase in retail brokerage customers, which rose from 434,000 to 555,000 during the same timeframe.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Brokerage Services Income | $206,583 | $139,795 | $60,788 | 43% |
| Commission Income from Payment Processing | $14,533 | $28,341 | $(13,808) | (49%) |
| Underwriting and Market-Making Services | $5,916 | $11,741 | $(5,825) | (50%) |
| Banking Services | $4,388 | $22,149 | $(17,761) | (80%) |
| Other Fee and Commission Income | $11,158 | $8,380 | $2,778 | 33% |
| Total Fee and Commission Income | $236,540 | $210,406 | $26,134 | 12% |
Interest Income
Interest income for the six months ended September 30, 2024, amounted to $436.3 million, an increase of 20% compared to $362.4 million in the prior year. This increase was attributed mainly to rising interest income from margin loans and customer loans.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Interest Income on Trading Securities | $212,120 | $200,880 | $11,240 | 6% |
| Interest Income on Loans to Customers | $101,760 | $74,201 | $27,559 | 37% |
| Interest Income on Margin Loans | $66,087 | $27,319 | $38,768 | 142% |
| Total Interest Income | $436,328 | $362,412 | $73,916 | 20% |
Net Gain on Trading Securities
Freedom Holding Corp. reported a net gain on trading securities of $16.2 million for the six months ended September 30, 2024, compared to a net gain of $82.6 million for the same period in 2023.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) |
|---|---|---|---|
| Realized Gain | $15,241 | $51,923 | $(36,682) |
| Unrealized Gain | $974 | $30,664 | $(29,690) |
| Total Net Gain | $16,215 | $82,587 | $(66,372) |
Insurance Segment
The insurance segment reported underwriting income of $289.8 million for the six months ended September 30, 2024, a significant increase from $102.9 million in the same period of the previous year.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Insurance Underwriting Income | $289,752 | $102,865 | $186,887 | 182% |
Overall Financial Performance
For the six months ended September 30, 2024, Freedom Holding Corp. reported total revenue, net of $1.03 billion, an increase of 37% from $751.8 million in the prior year.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue, Net | $1,031,615 | $751,791 | $279,824 | 37% |
Expenses
For the six months ended September 30, 2024, total expenses were $861.5 million, representing an increase of 62% compared to $532.5 million in the prior year.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Expenses | $861,530 | $532,527 | $329,003 | 62% |
Net Income
Net income for the six months ended September 30, 2024, was $148.7 million, compared to $183.4 million for the same period in 2023.
| Item | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) | Change ($) |
|---|---|---|---|
| Net Income | $148,747 | $183,400 | $(34,653) |
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Resources:
- Freedom Holding Corp. (FRHC) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Freedom Holding Corp. (FRHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Freedom Holding Corp. (FRHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.